NAIROBI, Kenya, Nov 29 – The uptake of microinsurance in Kenya has surged by 72% over recent years, driven by demand for affordable and accessible coverage, according to a new report by the Association of Kenya Insurers (AKI).
Popular products include health, last expense, personal accident, and agriculture insurance, reflecting a shift in consumer priorities amidst rising economic challenges.
Health insurance remains a key focus, with policies expanding beyond basic inpatient and outpatient services to include maternity and specialist care.
This evolution has made healthcare more accessible for low-income households, responding to the high cost of medical services and enhanced benefits offered by insurers.
Personal accident insurance has gained traction among motorists and other groups, addressing gaps left by traditional motor insurance.
Short-term, low-cost policies now cover passengers, event attendees, and students, such as CIC Insurance Group’s Student Personal Accident policy, which provides protection for as little as Sh500.
In agriculture, tailored microinsurance products for dairy and horticultural farmers are on the rise. These include livestock insurance with added benefits like free veterinary services, offering farmers a safety net against disease and other risks.
Demand for last-expense insurance is also growing, spurred by the high fatalities from road accidents. Low-cost policies now cover funeral expenses and provide financial support for bereaved families, restoring dignity and alleviating financial strain during crises.
The report highlights digitization as a key enabler of microinsurance growth.
The number of products has increased from 32 in 2015 to 55 in 2023, with 18 underwriters now participating in the market, up from 11 in 2015.
This growth is attributed to advancements in technology, rising healthcare costs, and enhanced policy benefits, making microinsurance more accessible and appealing to Kenyans.
